-56-
(B) Aggregation rules.--
(i) Special rule for leases of
section 1245 property by
partnerships or S corporations.--In
the case of any partnership or S
corporation, all activities with
respect to section 1245 properties
which--
(I) are leased or
held for lease, and
(II) are placed in
service in any taxable
year of the partnership
or S corporation,
shall be treated as a single activity.
(ii) Other aggregation
rules.--Rules similar to the rules
of subparagraphs (B) and (C) of
paragraph (3) shall apply for
purposes of this paragraph.
(3) Extension to other activities.--
(A) In general.--In the case of taxable
years beginning after December 31, 1978, this
section also applies to each activity--
(i) engaged in by the taxpayer
in carrying on a trade or business
or for the production of income,
and
(ii) which is not described in
paragraph (1).
(B) Aggregation of activities where
taxpayer actively participates in management
of trade or business.--Except as provided in
subparagraph (C), for purposes of this
section, activities described in subparagraph
(A) which constitute a trade or business
shall be treated as one activity if --
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